Mon Dec 30 15:10:00 UTC 2024: ## Wall Street Takes a Dip as Tech Stocks Drag Down Markets
**New York, NY** – US stocks concluded a lackluster week with significant losses on Friday, despite a year marked by record highs. The Dow Jones Industrial Average plummeted 333 points (0.78%), the S&P 500 fell 1.1%, and the Nasdaq Composite dropped 1.5%, largely driven by a sell-off in Big Tech.
Tesla experienced a notable 5% decline, while Amazon, Alphabet (Google), Microsoft, and Nvidia each lost around 2%. This sell-off disproportionately impacted the “Magnificent Seven” – the top-performing tech stocks (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla) – which have fueled much of this year’s market gains, largely due to investor enthusiasm surrounding the AI boom.
Analysts warn that this heavy reliance on a small group of stocks creates significant vulnerability. Keith Lerner, chief market strategist at Truist Wealth, stated that if even a few of these companies underperform expectations, a simultaneous downturn is likely. He advocates for a healthier market with broader participation across different sectors.
The cryptocurrency market also saw a downturn, with Bitcoin falling after a recent surge. Thin trading volume due to the shortened holiday week amplified these market movements. Analysts note that dramatic year-end market swings have become a recurring pattern, often occurring amidst low trading volume and profit-taking as traders take vacations.
Despite the sell-off, no significant news event triggered Friday’s decline, suggesting that the drop might be attributed to typical year-end market volatility. However, Anthony Valeri, investment management director at California Bank & Trust, remains bullish on stocks for 2025, predicting they will outperform bonds and advising investors to maintain their equity exposure.
First Piper 